In the papers, an investigator charges that Ferrer’s former aide helped arrange a $500,000, collateral-

free loan to a businessman in return for the businessman hosting a fund-raiser for the then-Bronx borough president.

The papers include requests filed in 1999 and 2000 by the Manhattan DA for authorization to tap phones in connection with the Velella probe.

In the wiretap requests, an investigator alleges that Ferrer’s then-executive assistant, José Ithier,

worked with Manny Gonzalez, a parking lot owner, to secure the loan for a businessman named Victor Cintron.

Cintron’s loan came from the Bronx Overall Economic Development Corporation, a semi-public, government-funded organization, that was also headed by Ithier.

Cintron needed the money to bid on a contract to build a facility for a methadone program, and Ithier

granted it without collateral, the papers said.

“On June 20, 1999, Cintron hosted a Fernando Ferrer fund-raiser at his home,” according to the wiretap request filed by State Police investigator Gustav Talleur.

“In exchange, Cintron and Gonzalez have worked with Fernando Ferrer and José Ithier . . . to obtain

for Cintron a small-business construction loan without the ordinary collateral requirement usually involved

in such loans.”

The wiretaps were approved and Gonzalez was recorded saying that Cintron’s soiree for Ferrer raised

only $5,000 because it was mistakenly scheduled on Father’s Day, the papers say.

In his report, Talleur says Gonzalez orchestrated the loan-for-fundraiser scheme.

The officer says Ferrer and Gonzalez had a “close friendship,” adding Gonzalez used that relationship “assist his clients with political patronage, all in furtherance of [Velella’s] criminal scheme.”

Talleur’s report says Gonzalez is heard on multiple occasions talking with a man named Lenny Carr, who

was involved in Ferrer’s fund-raising arm, “People for Ferrer.”

“Lenny Carr told Gonzalez that Ferrer wanted Gonzalez to be more involved in the fund-raising activities,”

the report says.

Another report, filed by investigator Gary Titus says, “Ferrer has been known . . . to do special favors

for Manny Gonzalez . . . likely in acknowledgement of Gonzalez’s fundraising effort on his behalf.”

On Monday, Velella, the former Bronx Republican chairman, began serving a one-year sentence for accepting $137,000 in fees and campaign contributions from business people seeking state contracts.

Gonzalez, described in the papers as the former senator’s “bagman,” was sentenced to eight months.

Ferrer yesterday denied any wrongdoing.

He said that he and Gonzalez had been friends since they were 16, but he doesn’t recall ever hearing of

Victor Cintron.

“If he held a fund-raiser for me, I’m grateful,” Ferrer said. “But not grateful enough to steer a loan to

him. That’s baloney. Absolutely not.

“As I understand it, every loan from the Bronx Overall Economic Development Corporation had to go through a committee and the entire board. It was intentionally set up that way so no individual could do anything like this.”

Ferrer blasted investigators for never getting in touch with him. “That I was not contacted speaks

volumes,” said Ferrer, who now works for the Drum Major Institute.

Ithier, now employed by Gov. Pataki’s Empire State Development Corp., did not return calls seeking

comment. Gonzalez couldn’t be reached.

—

Shady ‘trades’

‘The conversations show that in return for contractors holding fund-raisers and benefits for [Fernando] Ferrer [right], Ferrer is being asked to use his political office to arrange special preferences for [Manny] Gonzalez’s clients. Here he is being asked to remove two lots from publicauction. In the case of Tinton Avenue, the benefit to Senator Velella was cash funneled through the Velella Law Firm. Here, the benefit to Ferrer is the requirement that contractors hold fund-raisers for Ferrer’s mayoral campaign. This is no less than a quid pro quo.’

*

‘Clearly, Manny Gonzalez expected Fernando Ferrer to take some action on behalf of Victor Cintron due to

Cintron’s history as a Ferrer fund-raiser.’

*

‘Joe Ithier has awarded a Small Business Administrationloan to Ferrer contributor and Gonzalez client Victor Cintron, and is working to eliminate competition on Dormitory Authority contracts for another Ferrer contributor and Gonzalez client, Manny Varela.’